How often have we heard “those who don’t learn from history are doomed to repeat it” and “the future is a repetition of the past”? I mention these quotations to highlight the similarities of an event that occurred nearly forty years ago and which now could again be possible.

Right now central banks around the world are taking unprecedented measures to keep interest rates pinned near zero. In fact, in many parts of the world interest rates are now negative!

We don’t see indications sharply higher interest rates are imminent. Still, we urge all readers to consider what could cause either short- or long-term interest rates to turn higher. Decisions involving debt need to consider not just the current situation, but also scenarios for what may lie ahead.

Below are a few things to think about when assuming interest rates will stay low for years and years.